Overview - Institute of Food Technologists/media/GFTC/Resource/CAT2UserSummit20160913.pdf · • OpenTravel Alliance

© 2014 Institute of Food Technologists

Why, What and How You Can Benefit from

Global Food Traceability

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Overview

Mega trends: their impact on the food industry

Traceability defined

Global Food Traceability Center

Lessons learned from our work

Examples of traceability enabled success

Interoperability: next phase in food traceability

Conclusions


Factors impacting

every business in the food

industry

3

Environmental influences

Consumer influences

Impacts of globalization

Every business involved in the

food system impacted by…

No business is immune from these forces

Impacts of technology


Combined Effect….• Every business now competes in two worlds» Physical world of products, processes and markets» Virtual world of information and knowledge

• Consumer power reaching back through entire systems supplying goods to markets» Seeking specific responses to specific needs/wants

• Events around the world impact businesses» Faster than ever before» To a greater extent than ever before

• Changing the means by which customers and suppliers can secure/retain sustainable competitive advantage » Trading behavior lessens ability to innovate, manage risk

Changing Source of Competitiveness

Competitiveness once came from the process of

transforming one product into another

It now comes from analyzing the information that

comes from that transformation process…

…and using that information to continually improve

processes in relation to customer and consumer

demands

Porter & Millar, 1985


Traceability Defined

Systematic ability to access any or all information

relating to a food under consideration, throughout

its entire life cycle, by means of recorded

identifications

Traceability is not about technology (e.g. RFID

tags, bar codes, identifiers, standards, etc.)

• They are critical enablers, not the purpose.

A program to serve the agriculture and food sectors, by

providing applied research, objective advice, and practical

expertise about data collaboration and food product

traceability for business benefit and public good.

VisionTo become the global resource and

authoritative voice on food traceability.

Mission

Global Food Traceability CenterEstablished by Institute of Food Technologists (IFT), who

work to unlock the potential of the food science community

by creating a dynamic global forum where 18,000 members

from over 100 countries can share, learn and grow.


GFTC Sponsors

Logos are the copyright of their respective organizations and are used here for illustrative purposes only

Organizational Structure

10

Food Industry

Regulatory

Agencies

Consumers

Academia

National &

International

Organizations

Foundations &

Non-profits

Solution

Providers

GFTCKey Stakeholders

Advisory Council

Project Working

Groups

Research

Education and

Training

Protocols and

Standards

Technology Transfer

http://www.gcca.org/

http://www.gcca.org/

http://www.gs1us.org/

http://www.gs1us.org/


Business Platforms• Engaging stakeholders in the development and delivery of solutions

Global Food Traceability Center

Research

Education and

Training

Technology transfer

Protocols and

Standards


Five Lessons Learned

Traceability reduces risk

exposure & liability

Traceability means

transparency

Traceability is free – it reduces

costs & raises margins

The business value of

traceability is higher

Traceability is a business

opportunity

Traceability means increased

liability

Traceability means lost

confidentiality

The cost of traceability is

high

Traceability is only of value for

regulators

Traceability is a technology

problem

13

Implications for Commercial Business

1. Business’s perceptions about purpose and role of traceability are

rapidly changing

2. Business’s size has relatively low impact on its ability to capture value

from traceability

3. Attitude determines which businesses derive most value from

traceability systems

4. Primary value of traceability is reducing costs and risks, not short-

term revenue increases

5. ROI from traceability relies on exchange of reliable, relevant, readily

accessible information

6. Characteristics of the value chain influence the value that businesses

can derive from traceability


Value Chain Characteristics (How, Why, What)

Fragmented

Cooperative

Coordinated

Collaborative

Business A Business B Business C



Business A

Business B

Business C

Str

ate

gic

& o

pe

rati

on

al a

llia

nc

e

Why Chain Structure Determines

the Potential Value of Traceability

Basic traceability is most

important when business

relationships are transactional

and distrusting

Opportunities to maximize the

value of traceability occur when

business relationships are

trusting and collaborative


“It is about removing costs by eliminating the need to

dispose of poor quality that does not meet market

demands, giving people incentive to produce according to

market demands, and reducing wasted efforts along the

chain.”

Jon Morgan

General Manager

Livestock Marketing

Profiting from Traceability

Meat Standards Australia Whole of chain industry-driven government enabled program


Full Recording of Animal Movements

Capturing Added Value

• Enables eating quality to be predicted by carcass weight, age,

breed, meat colour, rib fat, cut, pH level

• NLIS enables breeders/producers to access carcass data for

collation and analysis in making informed decisions

• NLIS and NVDs ensure rigor, continual improvement


Certified Inspectors, Feedback

“Without NLIS, MSA could not have achieved the outcomes it has.”

Matthew Lester, Cow-calf Producer

MSA Grades


Consumer Communication


Success: Simple, Solid, Secure Determined purpose before operation and design

Traceability is the outcome, not the purpose

Independent management, government enabled

Extensive testing and mandating of technology

Accountability rests with individuals, not entities

Enforcement more by carrot than by stick

Costs borne by entire industry through levies

Accurate rigorous data collection and analysis

Leadership and collaboration

Proven role in enabling informed management

The Future: Interoperability

Interoperability• Extent to which two or more separate systems can

exchange data, and interpret that shared data to help users make more effective decisions

Benefits• New or improved products and services,

• Innovative forms of business cooperation

• More effective value chain management − US automotive: $493 million in inventory, chain coordination

− US Food: transaction costs ≥ entire industry’s margins


Learning from other industries Finance

• Society for Worldwide Interbank Financial Telecommunication (SWIFT)

• ISO 20022: impact assessment and solution design.

Travel• OpenTravel Alliance

• Open standards, member-driven working groups

Produce• Produce Traceability Initiative (PTI)

• Common nomenclature for product ID, common numerical ID system

Automotive• Automotive Industry Action Group (AIAG)

• Supply safe and Global Materials Management Operational Guidelines/Logistical Evaluation

What we do NOT want to do…

28 Source: http://imgs.xkcd.com/comics/standards.png


Overview of Traceability

Architecture Project

Project Purpose• Design a technology architecture suitable to the seafood

industry and develop a rollout strategy

• Provide supporting communications, education and training needed to accelerate understanding of the need for a common blueprint and collaborative strategy for an interoperable global seafood traceability system

• Maintain the seafood traceability financial (ROI) tool http://www.ift.org/gftc/resources/seafood-traceability-financial-tool.aspx

Overview of the Traceability


Interoperability reduces costs and burden of risk• Lowers need to meet multiple, duplicative data and

systems requirements

• Helps automate electronic data exchange

• Addresses common terminology

Like a blueprint, it is a framework: does not require “sameness”

• Built on “shared” principles . . . . and

• Flexible enough to embrace the diversity of business systems being used today

• Considers what already works

http://www.ift.org/gftc/resources/seafood-traceability-financial-tool.aspx




Interoperability must be balanced by principle of managed or controlled access

• Just because information is stored does not mean that it is “accessible to anyone”

• Data integrity = security and validity

Central concept• No matter what kind of information system stakeholders

may use in their own organizations

• Systems can communicate and be understood by other authorized systems through interoperability

• Presumption of use by trusted parties



Leverage: “Stitch together” dispersed data to provide a more complete view of seafood traceability – Data agnostic

Leverage: Use existing business systems and transactional data (through standardized protocols and secure access) to deliver relevant, reliable and readily accessible information

Leverage: Businesses that already have mature electronic data management systems encouraged to participate in early pilots so that implementation reflects current capabilities of industry, while maintaining flexibility for future alternatives

Leverage: Existing software vendors will need to accept the use of uniform requirements


Architecture Project:

Issues Brief

1. Term “traceability” typically misunderstood by industry stakeholders.

2. Realizable value to businesses and wider industry not met for a multitude of reasons.

3. Lack of a common ontology just one stumbling block preventing interoperable traceability.

4. Process disconnects: internal and external ICT systems incompatible, complexity of industry.

5. Stakeholder disconnects: interests & agendas vary, communication asymmetries result in lack of common understanding.

Achieving Full Interoperability

= evolving process

34O’Brien and Marakas – 13th Edition Introduction to Information Systems, 2012


Conceptual Overview:

Strawmodel Technology Architecture

35

Transactional Data

Suppliers Producers/Farmers Processors Distributors Retailers / FS

Data ownership retained by businesses

Automated Query & Response Portals (Investigative and Commercial Usage)

Virtual Lock Box

Virtual Lock Box

Virtual Lock Box

Virtual Lock Box

Virtual Lock Box

Global Registries

Premises Registry

Product Registry

ParticipantRegistry

Movement Registry

Terminology Registry

Regulatory Registries

Government

Govt access protocols and

security

WhoWhatWhen

Where

Certifying NGOs

Certifiers’ access protocols and

security

Consumers

Public access protocols and

security

Governance Processes

Solution providers

Software meets global protocol and security

requirements

Conclusion

Mega trends both driving and enabling traceability

• Most valuable when viewed as outcome, used strategically

• Produces otherwise unattainable insights and opportunities

Successful enterprise and industry level initiatives

• Barrier: concept of traceability not well understood

• Enabler: attitude ≥ than size and sophisticated technology

Success relies on a shortlist of common factors

• Simple, solid, secure

• Leadership, governance, purpose; then technology

Interoperability: the future of value enabling traceability

• Food industry benefiting from other industries' experience


Martin Gooch

[email protected]

www.globalfoodtraceability.org

mailto:[email protected]

http://www.globalfoodtraceability.org/

Documents

Overview - Institute of Food Technologists/media/GFTC/Resource/CAT2UserSummit20160913.pdf · • OpenTravel Alliance